India: Accelerating growthsimple average of rates of growth of GDP in the preceding years

India is the largest democracy and 4th largest economy (in terms of purchase power parity) in the world. India is also tenth most industrialized country in the world. With its consistent growth performance and abundant high-skilled manpower, India provides enormous opportunities for investment, both domestic and foreign.

Major reform initiatives have been taken since 1991, in the fields of investment, trade, financial sector, exchange control simplification of procedures, enactment of competition and amendments in the intellectual property right laws, etc.

The service sector improved its performance significantly from 7.9% in 2002-03 to 9.1% in 2003-04. The strong performance of the capital goods sector coupled with increased imports of capital goods also augurs well for domestic capacity expansion in large number of industries. The present trend indicates a positive outlook for industrial growth due to increased capacity utilization, improved industrial climate, expanding external and domestic demand and ease in availability of credit.
The strong and positive outlook of both foreign and domestic investors indicates that India is ready for a big push as the growing interest of foreign investors is coinciding with the rising confidence of domestic private investors. The increasing efficiency and competitiveness of domestic producers, liberalized trade, and deregulated interest rate regime are critical contributors to both growth acceleration and macro economic stability.

Who can invest in Indian Stocks?

There are 4 different types of market participants when it comes to investing in any country or stock market.

Resident Indian Individuals: They can, directly or through stock market, invest/trade in India without much restrictions. So a citizen of India who lives in India, has no restrictions to invest/trade in Indian stocks

Domestic Institutions: Subject to the Articles of Association and MoA of the charter and subject to SEBI's rules and regulations, a domestic company (including mutual funds, financial institutions) can also freely invest, directly or through stock market, in Indian securities.

People who are not resident of India. Let us divide them in two subgroups

Nonresident Indians (NRIs) and institutions controlled by them: Subject to certain special provisions, more or less, NRIs can also, directly or thro Indian stock exchanges, invest/trade in Indian stocks.

Foreign Individual Investors: if the person is a citizen of any other country (other than Nepal, Bhutan, Pakistan) and their parents or grandparents, had no ties with India at any point in time, then it is not possible to invest directly or through Indian Stock Exchanges in India. However there are some indirect ways to invest in India. Two most prominent ways are through ADRs (American Depository Receipts) issued by Indian companies in foreign markets or through mutual funds floated by foreign or domestic Institutional Investors

Under the FEMA a person residing in India means a person residing in India for more then 182 days during the course of preceding financial year and who has come to or stays in India either for taking up employment, carrying on business or vocation in India or for any other purpose, that would indicate his indicate his intention to stay in India for an uncertain period. In other words, to be treated as ‘a person resident in India’ under FEMA a person has not only to satisfy the condition of the period of stay (being more than 182days during the course of the preceding financial year) but has to comply with the condition of purpose/intention of stay.( For details see FEMA, 1999).

Who is a Nonresident Indian?

An Indian citizen or a foreign citizen of Indian origin who stays abroad for employment/carrying on business or vocation or under circumstances indicating an intention for an uncertain duration of stay abroad is a NONRESIDENT INDIAN ( NRI ).
Those who stay abroad on business visit, medical treatment, study or such other purposes which do not indicate an intention to stay there for an indefinite period will not be considered as NRIs. Students who go abroad for studies with an intention to stay there for an uncertain period and who stayed abroad for more than 180 days in the preceding financial year will be treated as Non Resident Indians.

Who is an PIO?

"Person of Indian Origin" means a foreign citizen [not being a citizen of Pakistan,Bangladesh and other Countries as may be specified by the central government from time to time] if,

He/she at any time held an Indian passport;

He/she or either of his/he parents or grand parents or great grand parents was born in and Permanently resident in India as defined in Government of India Act, 1935 and other territories that became part of India thereafter provided neither was to any time a citizen of any of the specified countries; or

He/she is a spouse of a citizen of India or a Person of Indian Origin covered under (i) or (ii) above.

Who is a person Of Indian Origin (PIO)?

1. For the purpose of availing of the facilities of opening and maintenance of bank accounts and investments in shares/securities in India;
a) Who at any time , held an Indian passport or
b) He/she or either of his/her parents or his/her grandparents was a citizen ofIndia by virtue of the constitution of India or the citizenship Act, 1955(57 of1955) or
c) The person is a spouse of the Indian citizen or a person referred to in clause (a) or (b) above.

2. For investments in immovable properties;
Person Of Indian Origin means an individual (not being a citizen of Pakistan or Bangladesh or Afghanistan or Bhutan or Sri Lanka or Nepal or China or Iran);

a) Who at any time, held an Indian passport or
b) Who or either of whose father or whose grandfather was a citizen of India By virtue of the Constitution of India or the Citizenship Act,1955(57 of 1955)

3. For the purpose of PIO card scheme ;
A foreign citizen if he /she at any time held an Indian passport;or he/she or either of his of his/her parents or grandparents or great grand parents was born in and permanently resident in India as defined in the Government of India Act,1935 or his/her spouse.

Company Shares/Debentures :
NRIs are permitted to make direct investments in proprietary/partnership concerns in India as also in shares/debentures of Indian companies. They are also permitted to make portfolio investments i.e. purchase of shares/debentures of Indian companies through stock exchange/s in India. These facilities are granted both on repatriation and non-repatriation basis.

Investment in Immovable Property :

Reserve Bank has granted general permission to foreign citizens of Indian origin, whether resident in India or abroad, to purchase immovable property in India for their bonafide residential purpose. They are, therefore, not required to obtain any prior permission of Reserve Bank.

Benefits of Person Of Indian Origin (PIO) Card Scheme

Besides making their journey back to their roots simpler, easier and smoother, this scheme entitles the PIO’s to a wide range of economic, financial, educational and cultural benefits.
The benefits envisaged under this scheme include:-

No requirement of visa to visit India;

No separate "Student Visa" or "Employment Visa" required for admission in colleges/institution or for taking up employment respectively;

No requirement to register with the Foreigners Registration Officer if continuous stay does not exceed 180 days. Registration is required to be done within a period of 30 days after expiry of 180 days;

Parity with Non-Resident Indians in respect of facilities available to the latter in economic, financial,

Admission of children in educational institution in India under the general category quota for NRIs-including medical/engineering colleges, IITs, IIMs etc.;

Various housing schemes of Life Insurance Corporation of India, State Government and other Government agencies;

Special counters at the immigration check post for speedy clearance.

All future benefits that would be extended to NRIs would also be made to PIO Card holders

Procedure for Application for PIO Card

The card would be issued to eligible applicants through the concentrated Indian Embassies/High Commission/Consulates and for those staying in India on a long term visa, from the concened Foreigners Regional Registration Officer (Delhi, Mumbai, Kolkata, Chennai) and also from the Ministry Of Home Affairs, Foreigners Division, Lok Nayak Bhawan, khan Market, New Delhi -110003The fee for the card, which will have a validity of 15 years, would be Rs.15,000/- and for the minor( below 18 years), the fees is Rs.7,500/-

Who is an Overseas Citizen of India (OCI)?

A foreign national, who was eligible to become a citizen of India on 26.01.1950 or was a citizen of India on or at any time after 26.01.1950 or belonged to a territory that became a part of India after15.08.1947 and his/her children and grand children, is eligible for registration as an Overseas Citizen of India (OCI). Minor children of such person are also eligible for OCI. However, if the applicant had ever been a citizen of Pakistan or Bangladesh he/she will not be eligible for OCI.

What are the investment opportunities available to NRIs in India?

Investments can be done either on Repatriation Basis or Non_Prepatriation Basis. Investment on REPATRIATION BASIS can be taken back to the country of residence of an NRI. That means, it is possible to convert the sale proceeds of investments into the respective currency and transfer to bank account to the respective residence without any restrictions.
In the case of Non_Prepatriation Basis investment, it is not possible to convert Indian currency to any foreign currency. Most of the investments made out of your NRE accounts are usually on the REPATRIATION basis.

* Government Securities/Units/ National Savings Certificates:

NRIs are freely permitted to invest their funds in Government securities or Units of UTI through authorized dealers. Units can also be purchased directly from UTI. Investments in National Savings Certificates can be made by NRIs subject to the terms and conditions applicable to the sale/issue of such certificates. However, NRIs are not permitted to invest in bearer securities like Indira Vikas Patra/Kisan Vikas Patra. These investments can be freely transferred or sold, provided the transfers/sales are arranged through an authorized dealer. Units can, however, be repurchased directly by UTI. If such securities were purchased out of funds remitted from abroad or out of NRE/FCNR accounts, sale/maturity proceeds can be repatriated. Sale/maturity proceeds of securities purchased out of funds in NRO accounts can only be credited to NRO accounts and cannot be remitted abroad.

Company Shares/Debentures :

NRIs are permitted to make direct investments in proprietary/partnership concerns in India as also in shares/debentures of Indian companies. They are also permitted to make portfolio investments i.e. purchase of shares/debentures of Indian companies through stock exchange/s in India. These facilities are granted both on repatriation and non-repatriation basis.

How much can NRIs invest in individual companies in India?

In the case of NRIs under PIS it is to be ensured that the paid-up value of shares/ convertible debentures purchased by an NRI under PIS route should not exceed 5% of the paid up capital/ paid up value of each series of debentures. The aggregate paid-up value of shares/ convertible debentures purchased by all NRIs should not exceed 10% of the paid-up capital of the company/paid-up value of series of debentures of the company. The aggregate ceiling of 10% can be raised to 24%, if the General Body of the Indian company concerned passes a special resolution to that effect. The NRI investor should take delivery of the shares purchased and give delivery of shares sold. Payment for purchase of shares and/or debentures is made by inward remittance in foreign exchange through normal banking channels or out of funds held in NRE/FCNR account maintained in India if the shares are purchased on repatriation basis and by inward remittance or out of funds held in NRE/FCNR/NRO account of the NRI concerned, maintained in India where shares/debentures are purchased on non-repatriation basis.
There is no limit on NRI purchasing shares/ convertible debentures issued by an Indian company on non-repatriation basis whether by public issue or private placement. Amount of consideration for such purchase shall be paid by inward remittance through normal banking channels from abroad or out of funds held in NRE/FCNR/NRO account maintained with the AD. NRI can also, without any limit, purchase on non-repatriation basis dated Government securities, treasury bills, units of domestic mutual funds, units of Money Market Mutual Funds.Investment in Immovable Property : Reserve Bank has granted general permission to foreign citizens of Indian origin, whether resident in India or abroad, to purchase immovable property in India for their bonafide residential purpose. They are, therefore, not required to obtain any prior permission of Reserve Bank.

Types of NRI bank accounts:

Bank Accounts:

NRIs/PIOs are permitted to open bank accounts in India out of funds remitted from abroad, foreign exchange brought in from abroad or out of funds legitimately due to them in India.Such accounts can be opened with banks specially authorized by the Reserve Bank in this behalf [Authorized Dealers].

There are three types of Non- Resident accounts:

RUPEE ACCOUNTS:

1. Non-Resident (External) Rupee Accounts(NRE Accounts)

NRIs and PIOs are eligible to open NRE Accounts. These are rupee dominated accounts. Accounts can be in the form of savings, current, recurring or fixed deposit accounts. Accounts can be opened by remittance of funds in free foreign exchange. Foreign exchange brought in legally, repatriable incomes of the account holder, etc. can be credited to the account. Joint Operation with other NRIs/PIOs is permitted. Power of attorney can be granted to residents for operation of accounts for limited purposes.
The deposits can be used for all legitimate purposes. The balance in the account is freely repatriable. Interest lying to the credit of NRE accounts is exempt from tax in the hands of the NRI.Funds held in NRE accounts may be freely transferred to Foreign Currency Non Resident( FCNR) accounts of the same account holder. Likewise, funds held in FCNR accounts may be transferred to NRE accounts of the same account holder.

2. Ordinary Non-Resident Account( NRO Accounts)

These are Rupee dominated non-repatriable accounts and can be in the form of savings, current, recurring or fixed deposits. These accounts can be opened jointly with residents in India. When an Indian National/PIO resident in India leaves for taking up employment etc. outside the country, other than Nepal or Bhutan, his bank account in India gets designated as NRO account.The deposits can be used to make all legitimate payments in rupees. Interest income from NRO accounts is taxable. Interest income, net of taxes is repatriable. Authorized dealers may allow remittances upto US $ 1 million, per calender year, out of balances held in NRO account for any bonafide purpose.

FOREIGN CURRENCY ACCOUNTS:

3. Foreign Currency Non Resident (Bank) Accounts (FCNR (B) Accounts)

NRIs/PIOS are permitted to open such accounts in Us Dollars, Sterling Pounds, Japanese Yen, Euro, Canadian Dollars and Australian Dollars. These accounts may be opened in the form of term deposit for any three maturity periods viz; (a) one year and above but less than two years (b) two years and above but less than three years and (c) three years only. Now RBI has allowed banks to accept FCNR (B) deposits upto maturity period of five years.
Interest income is tax free in the hands of the NRI until he maintains a non-resident status or a resident but not ordinarily resident status under the Indian tax laws.FCNR (B) accounts can also be utilized for local disbursement including payment for exports from India, repatriation of funds abroad and for making investments in India, as per foreign investment guidelines.

How can an NRI invest/trade in Indian stock markets?

Step 1: Get PAN Number, Open three types of accounts and get Reserve Bank of India's one time permission.

1. Obtain PAN number from IncomeTax Department of India as it is compulsory to have PAN if any trade needs to be placed with a broker in India since Jan 1, 2007.

What is a PAN card?

Is it compulsory to have a PAN card for an NRI?

Permanent Account Number (PAN) card is issued to anybody who pays or will have to pay taxes in due time in India. As per the new rules and guidelines, even NRI’s are required to have a PAN card .

2. Open two bank accounts with RBI (Reserve Bank of India) approved *Designated* Bank Branch- NRE Account and NRO Account .Designated branch is a bank branch which is selected/approved by Reserve Bank of India to open NRE accounts that are intended to be used for buying and selling stocks on stock exchanges. Such branches also have the expertise and infrastructure to handle NRI's trading under RBI's Portfolio Investment Scheme. They help you get necessary approvals and help RBI watch NRIs holdings in various companies.
3. Some tips about which bank to select:

Here is a list of some important factors in choosing a bank:

Does the bank have a branch in your local town/city in India?

Does it have a branch in your current city of residence abroad (I mean USA, England, Russia wherever you are living?

Does the bank offer online banking facility?

Does it have dedicated staff for providing trading/investing needs of NRI investors like yourself?

Is the bank-branch a designated branch by RBI under Portfolio Scheme (for investment by NRIs thro stock exchangers)?

Does the bank prefer or work with any SEBI registered stock brokers?

Does the bank itself offer any stock broking/brokerage services?

Does the bank itself offer any stock broking/brokerage services?

Is the bank Depository Participant? Does it open Individual's demat accounts?

Very important: What are their charges and fees? (Some of the banks charge too high fees for even basic services.So do your Homework

The depository concept is similar to the Banking system with the exception that banks handle funds whereas a depository handles securities of the investors. A depository can therefore be conceived of as a "Bank" for securities. An investor wishing to utilize the services offered by a depository has to open an account with the depository through the Depository Participant. This is very similar to opening an account with any of the branches of a bank in order to utilize the services of that bank.
How to choose a good DP for you?
Open a Demat account. You can check with your banker or broker above. Chances are they are also Depository Participant.

Here is a list of Important factors in choosing a DP:

Is it Depository Participant with NSDL or CDCL? NSDL is the biggest depository institution in India.

Does it offer online account viewing?

Does it let you transfer stocks into and out of it to your brokers' account for clearing purposes

What is its fee structure?

What extra services does it offer?

Do they seem knowledgeable about demat accounts by NRIs?

5. Open an account with a stock broker who is a member of either of the stock exchange. As NSE has nationwide coverage and is professionally run, an account with a NSE member is more desirable over an account with a BSE member. How to select a stock broker for trading stocks in India?
Settlement of trades in India is now T+2

Here is a list of Important factors in choosing a stock-broker in India:

Is it registered with SEBI as a stock broker?

Which stock exchanges, the broker is a member of? If it is a member of both NSE and BSE, it is much better.

If trading in Indian stocks and derivatives is intended, check if the broker is a member of Equity as well as Derivatives segments of the National Stock Exchange/Bombay Stock Exchange.

What are the brokerage commissions?

Does it offer online stock trading facility?

How seamlessly does the brokers' infrastructure work with your bank and DP?

Does it have dedicated/expert staff to handle details of investing by NRIs like yourself?

6. Once these three accounts are in place, see if there is a local relative/representative in India who can spare some time if needed and give him/her a power of attorney.
7. Get Reserve Bank of India's approval for investing in Indian stocks under Portfolio scheme. The application is to be submitted to Reserve Bank through a designated branch of a bank in India in one of the prescribed forms, i.e. NRC/NRI/RPC/RPI. Reserve Bank issues general permission for a period of 5 years which can be renewed further by authorized dealer concerned for a period of 5 years at a time. Step 2: Routines to be followed

Stock Selection: As always, you will need to do research before you take a plunge. So do your research and select the stocks you want to invest in.

Clearance from Bank: Contact bank with the list of stock intended for to investment and get clearance for trading/investing in those stocks. As per Indian rules, NRIs cannot collectively acquire more than 24%, 40% or X % of the paid up capital of an Indian company. So RBI maintains the current levels of NRI holding in various companies thro the designated branches. If the limit is exceeded, it might not be possible to invest in those stocks. So make sure to get prior clearance about investments from the banker.

Place Trades Through Stock Broker: Place order(s) through stock broker. With many stock brokers, online orders can be placed.

Forward Copy Of Trade Confirmation To The Bank: After order is confirmed, forward a copy of the TRADE CONFIRMATION to the bank

Pay To Broker For Purchases And Tell About Demat Account: Give a cheque through NRE/NRO account to the stock broker. On the settlement date, stock broker will send the stocks to demat account and it can be verified with depository participant if the stocks are credited to the account.

Closing/ Selling Your Iinvestment: Place a SELL order with the broker. When the order is confirmed, transfer shares to broker's clearing account from demat account. After settlement, broker will give a cheque. Take that cheque and a copy of broker's bill showing the SELL transaction to bank account for deposit. The bank will withhold some taxes on the gains and deposit the rest amount in the account

File Your Tax Returns Every Year: Most of the time, it might be possible to get refund from the withholdings done by banker. Sometimes it is required to pay additional taxes to Indian government. Check with tax consultant in India.

General Permission to NRI/PIO’s:

The Reserve Bank has granted general permission to NRIs/PIOs for undertaking direct investment in Indian companies under the automatic route, purchase of shares under Portfolio Investment Schemes, investment in companies and proprietorship/partnership concerns on non-repatriation basis and for remittances of current income. NRIs/PIOs do not have to seek specific permission for approved activities under these schemes.The Reserve Bank of India has further simplified financial transactions by NRIs/PIOs by granting general permissions to:

Resident individuals ,partnership/proprietorship concerns to avail the interest of bearing rupee loans from NRIs/PIOs out of funds remitted from abroad or out of funds held in their bank accounts in India, on non-repatriation basis,subject to two conditions; one of them being that the rate of interest on such loans should not exceed Bank Rate plus two percentage points.

NRIs/PIOs to transfer by way of gifts shares help by them in Indian companies and to transfer by way of gift immovable property held by them in India subject to compliance with other applicable rules/regulations including the provisions of Foreign Contributions Act,1976 by the charitable trust/organization concerned.

All domestic public/private sector mutual funds for issue of units to NRIs/PIOs on both repatriation and non repatriation basis.

NRIs/PIOs to place deposits with Indian firms, on non-repatriation basis and with Indian companies on non-repatriation basis out of domestic sources.

NRIs/PIOs for sale of shares acquired under direct investment schemes on stock exchanges in India.

NRIs/PIOs for transfer of shares, by way of sale under private arrangement to another NRI or to a resident.

RBI permission is not required for drawal of foreign exchange for purpose of trade marks or franchise in India.

NRIs/PIOs may remit the sale proceeds of immovable property without the lock in period of 10 years subject to a maximum of 1 million USD per calendar year.

NRIs/PIOs have been granted general permission to invest in Government Securities and Treasury bills.
Taking into accout the facilities that are already available, and the above new measures, NRIs/PIOs will not have to seek specific permission of Reserve Bank for a whole variety of approved financial/investments transactions. This should considerably reduce paper work and time taken for undertaking such transactions.

Direct investment opportunities:

NRIs can invest in India as under: 1. Investment under Automatic Route with repatriable benefits.2. Investment with Government approval3. Other investments with repatriation benefits4. Investments upto 100% equity without repatriation benefits5. Other Investments by Nris without repatriation benefits3. Other investments with repatriation benefits:4. Investments upto 100% Equity without repatriation benefits:

Other investments by NRIs without repatriation benefits:

(i) Investments in Non Convertible Debentures

(ii) Money Market Mutual funds

(iii) Deposits with companies

(iv) Commercial Papers

Tax benefits for NRI:

Income from the following investments made by NRIs/PIOs out of convertible foreign exchange is totally exempt from tax:

(a) Deposits in under mentioned bank accounts

i. Non Resident External Rupee Account (NRE)

ii. Foreign Currency Non Resident Account (FCNR)

(b) Units of Unit Trust of India and specified mutual funds , other specific securities , bonds and savings certificates (subject to the conditions prescribed under the Income tax laws and regulations).

(c) Dividend declared by Indian company.

(d) Long term capital gains arising from transfer of equity shares in a company and/or equity oriented schemes of Mutual Funds , which are subject to Securities Transaction Tax.

Portfolio Investment Scheme for NRI’s:

Portfolio Investment is covered by general permission subject to following condition/provisions.

Investment is permitted on repatriation as well as non-repatriation basis.

Purchase/sale is done through a registered broker of a recognized stock exchange.

One bank branch must be designated by NRIs and all purchase/sale must be routed through that designated bank branch only

All transactions of sales and purchase must be delivery based. Speculative transactions are not allowed.

Mode of investment may be in any of the following ways:

For investment on Repatriation basis

inward remittances through normal banking channels

out of FCNR/NRE account.

For investment on non-repatriation basis

Ceiling on Investment

Per investor (Each NRI)

5% of the paid up value of shares of an Indian Company on both repatriation and non-repatriation basis.

5% of the value of each issue of convertible debenture of an Indian Company on both repatriation and non-repatriation basis.

Per investee Company

(Total holding by al NRIs put together on both repatriable as well as non-repatriable basis.)

10% of paid-up value of shares of an Indian company.

10% of paid-up value each series of convertible debenture.

This Ceiling of 10% could be increased to 24%, if the General Body of concerned Indian Company passes a special resolution to that effect.

Repatriation of Sale/Maturity Proceeds

Sales proceeds of Investment held on repatriation basis can be credited to NRE/FCNR/NRO account after payment of applicable taxes.

If investment is on non-repatriation basis, credit of sale/maturity proceeds is permitted in NRO account.

Existing OCBs must intimate the designated bank branch immediately on the holding/interest of NRIs in the OCB becoming less than 60%

NRIs are allowed to enter into forward contracts to hedge their investment made in India.

xi) NRI is also permitted to invest in exchange traded derivatives contracts approved by SEBI from time to time out of his Rupee funds held in India on Non-Repatriable basis subject to the limits prescribed by SEBI

xii) NRIs can also invest without limit on repatriable basis in Government dated
securities , treasury bills, units of domestic mutual funds, bonds issued by PSUs, shares in public Sector Enterprises which are being disinvested by Government. They can also invest without limit on no-repatriable basis in Government Dated Securities, Treasury Bills, units of Domestic Mutual Funds, units of Money Market Mutual Funds. However, NRIs are not permitted to make Investments in Small Savings Schemes including PPF.

Remittance facilities for NRI’s/PIO’s:

Remittance of capital assets in India held by a person whether resident in or outside India would require approval of the reserve bank except to the extent provided in the Foreign Exchange Management Act,1999 (FEMA) or Rules or Regulations made under the Act.1. Remittance of assets by NRIs/PIOs
NRI/PIO may remit upto $1,000,000 per year out of the balance in his Non Resident (ordinary) account/sale proceeds of assets (inclusive of inheritance/settlement).2. Repatriation of sale proceeds of residential property purchased by NRIs/PIOs out of foreign exchange
There is no lock-in period for sale of residential property purchased by NRI?PIO out of foreign exchange. However, repatriation of sale proceeds of residential property purchased by NRI/PIO out of foreign exchange is restricted to not more than two such properties.
Remittance representing refund of application/earnest money on account of non allotment is permitted together with interest if the original payment was made out of NRE/FCNR account of the account holder or the remittance was from outside India through normal banking channels.3. Remittance of current incomeRemittance of current income like rent, dividend, pension, interest etc. of
NRIs/PIOs who do not maintain NRO Account is freely allowed on the basis of
appropriate certification by a Chartered Accountant certifying that the amount
proposed to be remitted is eligible for remittance and that applicable taxes have
been paid/ provided for.4. International Credit CardsBanks may issue International Credit Cards to NRIs/PIOs without prior approval of the RBI.